Gary H. Burner, Chief Financial Officer, Federal Financing Bank (FFB) announced the following activity for the month of May 2008.

FFB holdings of obligations issued, sold or guaranteed by other Federal agencies totaled $30.9 billion on May 31, 2008, posting an increase of $1,165.7 million from the level on April 30, 2008. This net change was the result of increases in net holdings of agency debt (U.S. Postal Service) of $929.1 million and in net holdings of government-guaranteed loans of $236.6 million. The FFB made 29 disbursements and received 5 prepayments during the month of May.

Attached to this release are tables presenting FFB May loan activity and FFB holdings as of May 31, 2008.

FEDERAL FINANCING BANK
MAY 2008 ACTIVITY

Amount

Final

Interest

Borrower

Date

of Advance

Maturity

Rate

AGENCY DEBT

U.S. POSTAL SERVICE

U.S. Postal Service

5/02

$133,000,000.00

5/05/08

1.353%

S/A

U.S. Postal Service

5/05

$100,000,000.00

5/06/08

1.343%

S/A

U.S. Postal Service

5/05

$247,700,000.00

5/06/08

1.444%

S/A

U.S. Postal Service

5/30

$900,000,000.00

6/02/08

2.207%

S/A

U.S. Postal Service

5/30

$389,100,000.00

6/02/08

2.115%

S/A

GOVERNMENT-GUARANTEED LOANS

GENERAL SERVICES ADMINISTRATION

Foley Services Contract

5/14

$361,231.11

7/31/25

4.228%

S/A

San Francisco Bldg Lease

5/20

$697,140.10

8/01/35

4.504%

S/A

DEPARTMENT OF EDUCATION

*Tuskegee Univ.

5/01

$2,000,000.00

11/03/08

1.640%

S/A

Allen University

5/15

$104,626.41

5/01/19

4.052%

S/A

Southern University

5/27

$2,088,120.00

6/02/08

1.929%

S/A

RURAL UTILITIES SERVICE

Tularosa Basin Tel. Co. #2277

5/01

$357,000.00

1/03/28

4.082%

Qtr.

Central Iowa Power Coop #2240

5/05

$1,400,000.00

12/31/35

4.283%

Qtr.

Dairyland Power #2217

5/05

$21,351,000.00

1/03/33

4.331%

Qtr.

Dairyland Power #2218

5/05

$13,853,000.00

12/31/36

4.398%

Qtr.

Venture Communications #2296

5/05

$19,439,570.51

12/31/18

3.458%

Qtr.

Fort Loudoun Elec Coop #2057

5/12

$12,000,000.00

1/03/33

4.255%

Qtr.

Baltic Telecom Coop. #810

5/13

$1,732,091.00

12/31/19

3.393%

Qtr.

Splitrock Telecom Coop. #506

5/13

$6,093,931.00

1/02/18

3.312%

Qtr.

Central Iowa Power Coop #2311

5/14

$2,500,000.00

1/03/40

4.370%

Qtr.

Associated Electric #2288

5/16

$17,051,000.00

12/31/25

4.037%

Qtr.

Atlantic Telephone Mem. #805

5/16

$5,805,000.00

12/31/20

3.600%

Qtr.

Georgia Trans. Corp. #2342

5/16

$62,538,000.00

12/31/40

4.420%

Qtr.

Pembroke Telephone Coop. #2147

5/16

$727,000.00

1/03/22

3.701%

Qtr.

Brazos Electric #2086

5/21

$5,000,000.00

9/30/08

1.870%

Qtr.

Brazos Electric #2182

5/21

$1,208,000.00

9/30/08

1.870%

Qtr.

Brazos Electric #2307

5/21

$5,000,000.00

9/30/08

1.870%

Qtr.

East Kentucky Power #2322

5/22

$25,000,000.00

12/31/40

4.402%

Qtr.

Red River Rural Tel. #2113

5/27

$705,000.00

1/03/23

3.816%

Qtr.

Dairyland Power #2262

5/30

$8,181,000.00

12/31/40

4.628%

Qtr.

East Kentucky Power #2322

5/30

$25,000,000.00

12/31/40

4.629%

Qtr.

S/A is a Semiannual rate
Qtr. is a Quarterly rate
* maturity extension or interest rate reset or principal rollover